skip to Main Content

Valuation for Startups Using Discounted Cash Flows Approach

  • This course covers discounted cash flow (DCF) valuation method for estimating value of an investment based on its future cash flow
  • For the business organizations aspiring to learn investment decisions through the DCF method
  • Helps you understand inflation, bond valuation and forecasting the free cash flow

The discounted cash flow (DCF) method means that we can find firm value by discounting future cash flows of a firm. In order to understand the meaning of present value, we are going to discuss the time value of money first, i.e., the value of $100 today is different from the value of $100 a year later. Then, what should be the present value of $100 that you are going to receive in one year? How about the value of $100 dollars that you are going to receive every year for next 10 years? How about forever?

After taking this course, you will be able to find the present value of these types of cash flows in the future. You will learn how to use Excel to find present value of future cash flows. In addition to the present value, you are also going to learn how to find future value given investment, interest rate given investment and future cash flows, payments given interest rates, number of periods to wait given investment and interest rate, and so on.

After learning the concept and how to find the time value of money, you are going to apply this to real world examples and company valuation. After taking this course, you will be ready to make an estimate of firm value by discounting its cash flows in the future.

Spread the Word

More To Explore

Know Your Competitors

By Denis Jakuc 

There are tons of benefits to knowing who your competitors are—what they’re offering, their strengths and weaknesses. That knowledge can help you make your products and services stand out,